Question

LLC Closure

Forum|Forum|6 years ago
April 19, 2020
2 replies
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An LLC that I have passive losses in closed in 2019. The Final K-1 box is not checked. I do not expect any material changes on the 2020 K-1. Can I claim all the passive losses on my 2019 taxes?

Thanks

JC201

Rick19744

Employee

No. Not until you either receive a final K-1 or there are other mitigating circumstances, such as the LLC going out of business, bankruptcy, etc. Even then there are certain steps that need to be taken before determining it is a final disposition.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Carl11_2

Employee

The LLC very well "may" have had some outstanding transactions that were not completed until after Dec 31, 2019. Therefore the LLC is not closed yet. That's why the "final" box would not be checked. So you'll have to wait until next year. Hopefully by then all LLC transactions will have been completed and you'll get a final K-1.